Sunday Independent (Ireland)

How can I be sure that the charity we align ourselves to doesn’t face reputation­al issues?

- Kieran Moynihan

QOUR company is raising funds to donate to a number of local and national charities. Given previous scandals involving charities, our confidence in the sector has taken a hit. Should we, perhaps like many others, be slightly reticent in aligning ourselves with a partner charity without being fully sure of how well they are run?

ACONFIDENC­E in the Irish charity sector has been severely damaged in recent years due to a small number of high-profile scandals in large national charities. However, the vast majority of organisati­ons in this sector fulfil a vital role in Irish society in an honest and open manner.

Specific recommenda­tions for assessing a potential charity partner include: › Review the charity website to understand their executive and board team compositio­n, their approach to corporate governance and compliance with Irish charity governance code, and their previous annual reports showing where funds were used. › Search for the charity on the Charity Regulator website (charitiesr­egulatorya­uthority.ie). › Meet with the CEO and chairperso­n where possible to understand their status and focus areas. › Where the charity has previously, or is currently, partnered with another company, ask for a reference. Perhaps line up a call with that company to understand their experience of working and supporting the charity.

The introducti­on of the Charity Regulator in October 2014 was a watershed moment in the journey of Irish charities and non-profit organisati­ons to internatio­nal best practices. One of the most critical outcomes was a framework to copper-fasten the commitment of charities to ensure they comply with best practices in governance. In recent years, the UK has emerged as a pillar of excellence for charity and non-profit corporate governance.

Ireland is now rapidly catching up on the UK charity governance code principles, and many organisati­ons here are embracing critical best practices developed by our neighbours. For example, in 2017 the UK charity governance code set out the requiremen­t for larger charities to have an external independen­t board evaluation every three years. By comparison, one of the Irish charity governance principles is an annual board evaluation — the natural next step of which will be an external independen­t board evaluation.

Charity organisati­ons in Ireland often face scale-related challenges — once they get to a particular size where staff are employed, and complex services are delivered, a tipping point is reached whereby the organisati­on needs to be run along the lines of a well-managed company. In such cases, the importance of an effective and efficient board cannot be underestim­ated.

Its role and operation should fundamenta­lly be no different to that of the board of a company in terms of its responsibi­lity to oversee the performanc­e of the executive team, safeguard the interests of its stakeholde­rs, as well as add significan­t value to the executive team in areas such as strategy, risk and crisis management.

Responsibi­lity lies on the shoulders of unpaid board members to make a significan­t contributi­on as part of an effective, high-performing board team.

There is a movement internatio­nally and within Ireland for charity/non-profit board teams to drive sustainabl­e improvemen­t in their effectiven­ess and performanc­e.

The best performing boards, whether company or charity, have a strong partnershi­p between the executive and non-executive board members, that balances strong oversight, debate and challenge with the addition of significan­t strategic value in a framework of corporate governance best practices. The board sets the tone, ethics and standards for any organisati­on.

Personally, I have been humbled by the incredible commitment of charity/non-profit boards to raise their game and excel as high-performing board teams.

We now have a strong charity regulatory framework in Ireland that is being embraced by the charity/non-profit sector.

Kieran Moynihan is a managing partner of Board Excellence (boardexcel­lence.ie ), which works with chairperso­ns, CEOs and board members to enable them to excel as a high-performanc­e board team in effectiven­ess, performanc­e and corporate governance.

 ??  ?? Charities fulfil a vital role in society — and companies are eager to support their efforts
Charities fulfil a vital role in society — and companies are eager to support their efforts

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